Risking Inefficiency With Manual Accounts Receivable Collections
AUTOMATION SMARTER ACCOUNTS RECEIVABLE COLLECTIONS SOFTWARE
Manually processing accounts receivable collections?that is to say, collecting payments due from customers, tracking those funds and reconciling deductions?is time-consuming and potentially risky undertaking. For companies wishing to stay competitive, embracing order to cash software automation is prudent choice.
For financial executives considering their accounts receivable collection strategies, forsaking software automation carries with it number of downsides. First, without the use of software, tracking customer payments and accurately reconciling deductions can be labor-intensive and costly endeavor that is, at best, prone to human error and, at worst, can be rife with fraud and inaccuracies. Furthermore, manually handling payments can lead to longer accounts receivable cycles, cause friction between customers and suppliers, and in extreme cases, can result in payment devaluation if customers are not accurately charged for amounts due.
Without automation, accounting teams can be overwhelmed trying to juggle the administrative requests from customers, especially if too few resources are allocated to manage them. This can lead not just to inefficiencies but to customer dissatisfaction should crucial requests go unfulfilled. With manual processing, organizations can be at the mercy of their accounting teams? individual capabilities and any training gaps. As result, the risk of overpayment or misallocated funds to accounts can be higher.
At an organizational level, the choice to eschew automation can also bring added pressure onto finance teams as they encounter increasingly tight payment cycles and deadlines. Not only can this result in slower payments, but without an audit trail or accurate payment documentation, businesses may be unable to reconcile their accounts receivable.
By contrast, with the right software in place, companies can revolutionize their order to cash processes. Integrating automation into their accounts receivable cycles promises to reduce cycle times and improve accuracy. Automated systems are able to scan and format data quickly, allowing companies to reconcile assets and liabilities faster, produce reports with precision and swiftly chase payments from errant customers. By tapping into automated workflow systems, accounting professionals can be liberated to focus more on strategic tasks rather than manual administrative ones.
In summary, for organizations seeking to ensure streamlined receipt of payments, intelligent accounts receivable collections software automation is an indispensable component. Not only does it promise to accelerate payments and ensure accuracy, but the use of software can also help to free up finance teams to focus on higher value-added tasks. For those finance executives wishing to stay ahead of their competitors, software automation is an essential step.
